"He came in with the right terms and a short inspection period," Christopher Deuillet, senior associate with Marcus & Millichap Real Estate Investment Brokerage Co.'s Dallas office, tells GlobeSt.com about the sale of 4928 El Campo Ave. "I think our control of the market really helped put more money into the seller's pocket."
Deuillet says the buyer was under pressure to close the deal within 60 days of the contract's effective date or go up against a full marketing blitz. With one other offer on the table, the SoCal investor anted up his bid to 103.3% more than the ask, says Deuillet, who teamed with Marcus & Millichap associate James Harrell to sell the property.
Deuillet says the upside clearly lies in a rent hike for a fully leased complex filled by long-term tenants at below-market rates. "It could easily handle a $15 rent bump and nothing would change out there," he says. Closing at a 7.53% cap rate, Whisperwind Apartments' rents range from $375 to $575 per month.
The 37-year-old Whisperwind Apartments--six buildings positioned on one acre within eyeshot of Camp Bowie Boulevard--contains a pair of efficiencies, 24 one-bedroom units and 23 two-bedroom apartments. Units average close to 833 sf. The buyer, represented by Lone Star Commercial of Lubbock, plans to use in-house management to oversee the property.
According to Deuillet, the buyer made the close with 1031 exchange funds and a 10-year loan from LaSalle Bank in Chicago. The 80% loan-to-value financing carried a fixed-rate interest in the high 6% range, the broker says.
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